Parents Warned: The Car Insurance Mistake That Could Land Your Child a £5,000 Fine and a Ban

Parents trying to save money on their child’s car insurance could unknowingly be putting them at risk of a hefty fine, a driving ban, and even having their car seized.

Sten Saar, CEO of Zego, has warned that many parents are making a costly mistake when adding their child to their insurance policy—one that could lead to serious legal consequences.

The Dangers of ‘Fronting’

A common but illegal practice, known as “fronting,” happens when a parent lists themselves as the main driver of a vehicle that is actually used primarily by their child.

“Parents might think they’re doing the right thing by helping their child get cheaper insurance, but in reality, it’s insurance fraud,” Saar said. “If caught, the policy is voided, and the driver could face a significant fine or even lose their licence.”

Young drivers on a fronted policy could face:

• An unlimited fine
• Six points on their licence
• Their car being seized and crushed
• A criminal record

Other Mistakes That Could Invalidate Insurance

It’s not just fronting that can leave young drivers without valid cover. Parents and new drivers need to be aware of these common mistakes:

• Failing to declare modifications – Even small changes like tinted windows, new alloys, or a roof rack need to be reported.
• Not updating the car’s address – If a young driver keeps their car elsewhere but it’s insured at a parent’s address, claims could be rejected.
• Using the car for work without the right cover – If a young driver is making deliveries or ridesharing on a standard policy, they won’t be covered in an accident.

How Parents Can Legally Cut Insurance Costs

Instead of taking risky shortcuts, parents can help their child get cheaper insurance legally:

• Add the parent as a named driver – This can still lower premiums without breaking the law.
• Choose a car in a lower insurance group – Smaller, less powerful cars are much cheaper to insure.
• Consider a telematics (black box) policy – Insurers reward safe drivers with lower premiums over time.
• Pay annually instead of monthly – Monthly payments often include interest, increasing the total cost.

“Every parent wants to help their child, but cutting corners on insurance isn’t worth the risk,” Saar added. “The best way to save is by following the rules—because driving uninsured can cost far more than just money.”

By taking the right steps, parents can ensure their children are legally covered—without the risk of fines, bans, or costly mistakes.